Investment Objective/Strategy -The EquityCompass Tactical Risk Manager ETF is an actively managed exchange-traded fund. The Fund's investment objective is to provide long term capital appreciation with capital preservation as a secondary objective. Under normal market conditions, the Fund will seek to achieve its investment objectives by investing in equity securities of U.S. companies. During periods when the U.S. equity market is determined to be unfavorable by the Fund's sub-advisor, Choice Financial Partners, Inc. d/b/a EquityCompass Strategies, the Fund may invest all or a portion of its assets in cash, cash equivalents and short term fixed income. During such periods, the Fund may also invest a significant portion of its assets in securities designed to provide short exposure to broad U.S. market indexes.

There can be no assurance that the Fund's investment objectives will be achieved.

Fund Overview

Ticker

TERM

Fund Type

Tactical Equity

Investment Advisor

First Trust Advisors L.P.

Investor Servicing Agent

BNY Mellon Investment Servicing (US) Inc.

Portfolio Manager/Sub-Advisor

EquityCompass Strategies

CUSIP

33740F706

ISIN

US33740F7069

Intraday NAV

TERMIV

Fiscal Year-End

08/31

Exchange

NYSE Arca

Inception

4/10/2017

Inception Price

$20.05

Inception NAV

$20.05

Rebalance Frequency

Periodically

Expense Ratio

0.65%

Current Fund Data (as of 3/16/2018)

Closing NAV1

$22.32

Closing Share Price2

$22.38

Bid/Ask Midpoint

$22.32

Bid/Ask Premium

0.00%

Total Net Assets

$50,218,056

Outstanding Shares

2,250,002

Daily Volume

4,686

Average 30-Day Daily Volume

24,678

Closing Share Price 52-Week High/Low

$23.62 / $19.74

Closing NAV 52-Week High/Low

$23.60 / $19.70

Number of Holdings

150

Fund Characteristics (as of 2/28/2018)6

Maximum Market Cap.

$903,783

Median Market Cap.

$66,011

Minimum Market Cap.

$2,519

Price/Earnings

19.98

Price/Book

2.46

Price/Cash Flow

13.24

Price/Sales

1.72

Top Holdings (as of 3/16/2018)

Holding

Percent

XL Group Ltd.

1.07%

CSRA Inc.

0.89%

Amazon.com, Inc.

0.87%

TripAdvisor, Inc.

0.85%

Booking Holdings Inc.

0.80%

Qorvo, Inc.

0.80%

Intel Corporation

0.79%

Mastercard Incorporated

0.79%

Cisco Systems, Inc.

0.78%

AbbVie Inc.

0.77%

Holdings are subject to change.

NAV History (Since Inception)

Past performance is not indicative of future results.

Distribution Information

Dividend per Share Amt (as of 3/19/2018)3

$0.0831

30-Day SEC Yield (as of 2/28/2018)4

1.55%

Distribution Rate (as of 2/28/2018)5

1.50%

Bid/Ask Midpoint vs. NAV (as of 12/31/2017)

Number of Days Bid/Ask Midpoint Above NAV

Quarter Ended

0-49Basis Points

50-99Basis Points

100-199Basis Points

>=200Basis Points

12/31/2017

58

0

0

0

9/30/2017

51

0

0

0

6/30/2017

45

0

0

0

Number of Days Bid/Ask Midpoint Below NAV

Quarter Ended

0-49Basis Points

50-99Basis Points

100-199Basis Points

>=200Basis Points

12/31/2017

5

0

0

0

9/30/2017

12

0

0

0

6/30/2017

13

0

0

0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Month End Performance (as of 2/28/2018)

3 Mos

YTD

1 Year

3 Year

5 Year

10 Year

SinceFundInception7

Fund Performance *

Net Asset Value (NAV)

1.38%

-0.63%

N/A

N/A

N/A

N/A

11.06%

After Tax Held

1.22%

-0.63%

N/A

N/A

N/A

N/A

10.67%

After Tax Sold

0.81%

-0.37%

N/A

N/A

N/A

N/A

6.52%

Market Price

1.52%

-0.54%

N/A

N/A

N/A

N/A

11.26%

Index Performance

Hedge Fund Research HFRI Equity Hedge Index

2.67%

1.37%

N/A

N/A

N/A

N/A

N/A

S&P 500 Index

2.96%

1.83%

N/A

N/A

N/A

N/A

17.16%

Quarter End Performance (as of 12/29/2017)

3 Mos

YTD

1 Year

3 Year

5 Year

10 Year

SinceFundInception7

Fund Performance *

Net Asset Value (NAV)

5.90%

N/A

N/A

N/A

N/A

N/A

11.76%

After Tax Held

5.73%

N/A

N/A

N/A

N/A

N/A

11.37%

After Tax Sold

3.34%

N/A

N/A

N/A

N/A

N/A

6.65%

Market Price

5.99%

N/A

N/A

N/A

N/A

N/A

11.86%

Index Performance

Hedge Fund Research HFRI Equity Hedge Index

3.36%

N/A

N/A

N/A

N/A

N/A

N/A

S&P 500 Index

6.64%

N/A

N/A

N/A

N/A

N/A

15.06%

*Performance data quoted represents past performance. Past performance is not a guarantee of future
results and current performance may be higher or lower than performance quoted. Investment returns
and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than
their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold.
After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns
do not represent the returns you would receive if you traded shares at other times. Market Price returns are
based on the midpoint of the bid/ask spread on the stock exchange on which shares of the fund are listed for
trading as of the time that the fund’s NAV is calculated. Returns are average annualized total returns, except
those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and
do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax
situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold
their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

The Hedge Fund Research HFRI Equity Hedge Index returns are published as estimates and updated three times per month, therefore returns shown are subject to change. Returns for the index are not available since the fund’s inception as the index is calculated monthly. Unlike most asset class indexes, the Hedge Fund Research HFRI Equity Hedge Index returns reflect the fees and expenses of the funds it tracks, but the index itself does not assess a fee.

The expense ratio for this fund is 0.65%.

Hedge Fund Research HFRI Equity Hedge Index - The Index tracks the performance of equity hedge strategies that maintain positions both long and short in primarily equity and equity derivative securities.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).

3

Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.

4

The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.

5

Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.

6

All market capitalization numbers are in USD$ Millions.

7

Inception Date is 4/10/2017

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions.
Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net
asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be
redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund's authorized participants are unable
to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at
a discount to the fund's net asset value and possibly face delisting.

Risk Considerations

The fund's shares will change in value and you could lose money by investing in the fund. The fund is subject to management risk because it is an actively managed portfolio. In managing the fund's investment portfolio, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that the fund's investment objectives will be achieved.

The fund is subject to market risk. Market risk is the risk that a particular security owned by the fund or shares of the fund in general may fall in value.

The fund may invest in small or mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

Certain securities held by the fund are subject to credit risk, income risk and interest rate risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and that the value of a security may decline as a result. Income risk is the risk that income from the fund's fixed-income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of the fixed-income securities in the fund will decline because of rising market interest rates.

To the extent that the fund or an underlying ETF engages in derivatives transactions, the fund bears the risk that the counterparty to the derivative or other contract with a third-party may default on its obligations or otherwise fail to honor its obligations. If a counterparty defaults on its payment obligations the fund will lose money and the value of the fund's shares may decrease.
The fund invests in equity securities and the value of the shares will fluctuate with changes in the value of these equity securities. Equity securities prices fluctuate for several reasons, including changes in investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market.

The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs.

As the use of Internet technology has become more prevalent in the course of business, the fund has become more susceptible to potential operational risks through breaches in cyber security. Such events could cause the fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

The fund's potential investment in ETFs is restricted by the Investment Company Act of 1940, as amended, and the fund's associated exemptive relief which limits the amount of any single ETF that can be owned by the fund, individually and in the aggregate with all other registered investment companies and private investment pools advised by First Trust and its affiliates. This limitation may prevent the fund from purchasing shares of an ETF that it may have otherwise purchased pursuant to its investment objectives and principal investment strategy.

The fund may invest in inverse ETFs which would subject the fund to the risks of a short sales. The underlying ETF will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the fund purchases the security to replace the borrowed security. In a rising stock market, the underlying ETF's short positions may significantly impact the ETF's overall performance or cause it to sustain losses, particularly in a sharply rising market. The use of short sales may also cause the underlying ETF to have higher expenses than other funds.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.

First Trust Portfolios L.P. Member SIPC and FINRA.
First Trust Advisors L.P.